"We feel that Genworth's reserve hole is significantly larger than the upcoming charge," analyst Jimmy Bhullar wrote. "Given the company's limited disclosure on its in-force block, as well as significant management discretion in setting assumptions for reserve analysis, we consider projecting the charge with precision an exercise in futility."
The analyst said that Genworth may record costs of $200 million to $300 million in the fourth quarter, and that its total shortfall may be more than $2 billion.
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TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENWORTH FINANCIAL INC (GNW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."